Kongsberg Automotive Asa · OSL:KOA
Kongsberg Automotive Asa — Kongsberg Automotive New — Q1 2024 Earnings Presentation
32 slides from Kongsberg Automotive Asa's earnings presentation, May 8, 2024
Slide 1: Kongsberg Automotive Q1 2024
KONGSBERG AUTOMOTIVE Q1 2024 MAY 08, 2024
Slide 2: Forward-Looking Statements and Non-IFRS Measures
Kongsberg Automotive Q1 2024 Earnings Call FORWARD-LOOKING STATEMENTS AND NON-IFRS MEASURES FORWARD-LOOKING STATEMENTS This presentation contains certain “forward-looking statements”. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in
Slide 3: Today's Presenters and Agenda
Kongsberg Automotive Q1 2024 Earnings Call TODAY’S PRESENTERS AGENDA EXECUTIVE SUMMARY MARKET UPDATE FINANCIAL UPDATE GUIDANCE AND SUBSEQUENT ACTIVITIES Q&A LINDA NYQUIST-EVENRUD FRANK HEFFTER CEO & PRESIDENT CFO KONGSBERG AUTOMOTIVE KONGSBERG AUTOMOTIVE // // 33
Slide 4: Executive Summary
EXECUTIVE SUMMARY KONGSBERG AUTOMOTIVE // 4
Slide 5: Executive Summary – Q1 2024
Executive summary EXECUTIVE SUMMARY – Q1 2024 IMPROVED PROFITABILITY WITH ALL-TIME HIGH NEW BUSINESS WINS CORE BUSINESS €5.1M €175.2M €10.1M €450.0M EBIT Increase by MEUR 0.6 vs. Q1 2023 REVENUES Decrease of 6.2% vs. Q1 2023 EBIT NEW BUSINESS3 Increased by MEUR 6.5 vs. Q1 2023 Increase from MEUR 198
Slide 6: Core Business vs. Non-Core Business
Executive summary CORE BUSINESS VS. NON-CORE BUSINESS CORE NON-CORE 13.6% 8.8% 3.3% 3.3% -2.1% 2.9% 3.9 5.0 2.4% 5.8 5.7 -0.9 5.1 -31.6% EBIT 4.5 -12.7 0.2 -26.2 0.1% -75.4% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 REVENUES 186.9 184.4 175.2 44.7 175.8 176.2 41
Slide 7: Drive Control Systems Business Area Update
Executive summary DRIVE CONTROL SYSTEMS BUSINESS AREA UPDATE Q1 2024 REVENUES, MEUR 105.3 > Compared to Q1 2023, revenues decreased by 102.7 101.3 101.0 MEUR 9.1 (at constant currencies). This was mainly attributable to exceptionally high 92.5 revenues in Q1 2023 for Clutch Actuation Systems in Euro
Slide 8: Flow Control Systems Business Area Update
Executive summary FLOW CONTROL SYSTEMS BUSINESS AREA UPDATE REVENUES, MEUR 84.2 82.7 Q1 2024 79.1 > Revenues decreased by MEUR 1.4 (at constant 74.5 75.2 currencies) compared to Q1 2023, which was driven by lower revenues into the Commercial Vehicle market in Europe and Asia, partially offset by inc
Slide 9: Book-to-Bill Ratio Above 1 as Guided, Securing Future Growth
Executive summary BOOK-TO-BILL BOOK-TO-BILL RATIO ABOVE 1 AS GUIDED, SECURING FUTURE GROWTH BOOK-TO-BILL PERFORMANCE, MEUR NBW (lifetime sales LTM) Revenues (LTM) Book-to-bill ratio (incl BRP) Book-to-bill ratio (excl BRP) 1.1 1.2 1.0 1.0 0.9 0.9 0.9 0.9 0.8 1.2 1.1 0.8 0.8 0.8 0.9 1,013 0.8 0.8 989
Slide 10: New Business Wins – Q1 2024
Executive summary NEW BUSINESS WINS – Q1 2024 LIFETIME REVENUES, MEUR PER BUSINESS SEGMENT PER AREA 9.8 22.5 97.3 450.0 144.7 450.0 MEUR MEUR 282.8 315.4 17.2 10.3 DRIVE CONTROL SYSTEMS TRUCK, TRAILER, BUS & COACH AFTERMARKET FLOW CONTROL SYSTEMS PASSENGER CARS AGRICULTURE & CONSTRUCTION OTHER OPERA
Slide 11: Q2 New Business Wins Gear Control Unit (GCU)
Q2 NEW BUSINESS WINS GEAR CONTROL UNIT (GCU) KONGSBERG AUTOMOTIVE // 11
Slide 12: Q2 New Business Win on Gear Control Unit (GCU)
Executive summary Q2 NEW BUSINESS WIN ON GEAR CONTROL UNIT (GCU) OVER MEUR 523 IN ESTIMATED LIFETIME REVENUE ANNOUNCED ON APRIL 26, 2024 > ROBUST AND DURABLE DESIGN > MAXIMUM COMFORT AND PERFORMANCE FOR THE DRIVER > HIGH PERFORMANCE > LOW TOTAL COST OF OWNERSHIP > ONLY GCU IN THE MARKET WITH SELF- A
Slide 13: Market Update
MARKET UPDATE KONGSBERG AUTOMOTIVE // 13
Slide 14: Market Trends
Market update MARKET TRENDS COMMERCIAL VEHICLE MARKET WITH GROWTH VS. A WEAKER PASSENGER CAR MARKET MARKET DEVELOPMENT REGION ∆ Q1-24 vs. Q1-23 ∆ 2024 vs. 2023 GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units China +4.8% +5.2% +5.2% APAC w/o China +14.8% +5.6% 891 902 937 873 857 856 857 Europe
Slide 15: Market Forecasts: Reduced Dependency on China
Market update MARKET FORECASTS REDUCED DEPENDENCY ON CHINA IN COMING YEARS GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units INCLUDING CHINA EXCLUDING CHINA +6% +14% +6% +14% 3,854 3,987 4,136 2,458 2,519 2,638 3,636 3,781 2,316 2,342 3,456 2,202 2023 2024 2025 2026 2027 2028 2023 2024 2025 2026
Slide 16: Macroeconomic Stabilization: KA's Revenues Decoupled from Market
Market update MACROECONOMIC STABILIZATION KA`S REVENUES DECOUPLED FROM MARKET ON THE BACK OF TOUGH 2023 COMPARABLES REVENUE GROWTH VS MARKET GROWTH IN Q1 24 vs. Q1 23 1 PERFORMANCE IN KEY MARKETS GLOBAL C HINA > COMMERCIAL VEHICLES KA MARKET KA MARKET » While production output was relatively low in
Slide 17: Development of the Global Market Situation
Market update DEVELOPMENT OF THE GLOBAL MARKET SITUATION SUPPLY MARKETS GRADUALLY IMPROVING CURRENT TRIGGERS MACROECONOMIC FACTORS AFFECTING FOR DISRUPTION GLOBAL MARKET ENVIRONMENT Availability is further improving. Shortage limited to SEMICONDUCTOR SHORTAGE individual components only LABOR COSTS I
Slide 18: Financial Update
FINANCIAL UPDATE KONGSBERG AUTOMOTIVE // 18
Slide 19: Revenues
Financial update REVENUES CORE WITH LOWER E-ACTUATOR AND TRAILER REVENUES, NON-CORE STARTING TO DECLINE REVENUES (continuing operations), MEUR 246 906 885 2021 229 226 225 831 88 218 219 215 40 221 215 2022 excl. BRP 212 211 20 25 206 3 2022 BRP 193 2023 2024 212 818 199 201 206 Q1 Q2 Q3 Q4 Full Yea
Slide 20: EBIT
Financial update EBIT IMPROVED EARNINGS DESPITE LOWER REVENUES - COST OPTIMIZATIONS MATERIALIZING EBIT (continuing operations), MEUR and % of revenues 43.9 63.1 21.3 7.0% 2021 9.8% 20.4% 2022 excl. BRP 47.4 2022 BRP 2.6% 2023 13.0 2024 10.1 6.0% 9.7 9.2 8.0 4.8% 6.3 3.7% 4.4% 6.8 48.6 3.7% 3.6 3.3%
Slide 21: Revenues & EBIT Bridges
Financial update REVENUES & EBIT BRIDGES IMPROVED PROFITABILITY DESPITE LOWER VOLUME DCS > The impact of declining volumes was offset by benefits from REVENUES, MEUR operational improvements in variable costs and other 228.8 operational costs. -9.1 > Compared to Q1 2023, the change in impact from va
Slide 22: Net Income Bridge
Financial update NET INCOME BRIDGE IMPROVED OPERATIONAL AND FINANCIAL RESULT NET INCOME, MEUR +1.1 -0.4 CURRENCY GAINS/LOSSES > Foreign currency losses were significantly lower by MEUR 8.7 in Q1 2024 and amounted to MEUR 2.5. This is mainly due to less +8.7 unfavorable NOK development impacting the
Slide 23: Net Financial Items
Financial update NET FINANCIAL ITEMS NET CURRENCY EFFECTS, MEUR NET CURRENCY EFFECTS (ACCUMULATED) NET CURRENCY EFFECTS (PERIODIC) 6.4 5.6 4.3 2.9 3.5 2.4 -1.5 -2.5 -4.0 -3.5 -4.2 -6.7 -8.8 -11.2 -12.3 -10.9 -13.4 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 OTHER FINANCIA
Slide 24: Free Cash Flow
Financial update FREE CASH FLOW INTEREST AND NEGATIVE CASH FLOW FROM OPERATIONS WEIGHING ON Q1 2024 FCF FREE CASH FLOW1 , MEUR Q1 2024 FCF DETAILS +76.5 Operating activities -1.9 +84.5 Investing activities -5.3 +4.1 +4.8 +4.5 Financing activities -10.9 -1.3 Currency and translation -10.8 +1.1 -13.3
Slide 25: Q1 2024 Liquidity Development
Financial update Q1 2024 LIQUIDITY DEVELOPMENT LIQUIDITY DEVELOPMENT 1 , MEUR CASH UNUTILIZED SECURITIZATION FACILITY UNDRAWN RCF -9.4 +17.3 -1.7 219.7 -8.1 -4.8 -0.5 -5.0 164.7 -3.4 202.7 -2.4 +1.1 -0.1 147.7 25.0 25.0 30.0 30.0 Q4 2023 EBITDA Change in Tax payments Other operating Investment Loans
Slide 26: Financial Ratios
Financial update FINANCIAL RATIOS Incl. IFRS 16 effect LEVERAGE RATIO, NIBD 1/ ADJUSTED EBITDA, LTM ROCE 2, %, LTM 14.7 11.6 11.2 1.8 1.8 1.5 1.3 1.3 -3.9 -6.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 EQUITY RATIO, % CAPITAL EMPLOYED 3 , MEUR 33.9 31.7 33.4 30.
Slide 27: Liquidity Policy
Financial update LIQUIDITY POLICY CAPITAL ALLOCATION FINANCING STRATEGY 1) Support Organic growth (CAPEX & R&D) CONSERVATIVE, EFFICIENT AND EFFECTIVE 2) Provide flexibility to engage in equity > sufficient accessible liquidity at all times investments, JV´s, acquisitions > limit financial risks and
Slide 28: Refinancing
Financial update REFINANCING CONSIDERATIONS AND TIMELINE FOR REFINANCING CONSIDERATIONS TIMELINE > Work in progress with advisors > Reduce Main Facility to base requirements > Go to market either pre or post MEUR 100 – 140 summer break > Flexibility through RCF (and ARS/Factoring) > Refinancing conc
Slide 29: Guidance & Subsequent Activities
GUIDANCE & SUBSEQUENT ACTIVITIES KONGSBERG AUTOMOTIVE // 29
Slide 30: Revenue and EBIT Guidance for 2024 Reiterated
Guidance & Subsequent activities REVENUE AND EBIT GUIDANCE FOR 2024 REITERATED, NEW BUSINESS WINS GUIDANCE INCREASED GUIDANCE FOR 2024 ON THE AGENDA FOR 2024 REVENUE SPLIT, MEUR EBIT, MEUR NBW, MEUR BOOK-TO-BILL 44 885 880 34 > Policy deployment 830 161 120 140 > Capital Markets Day, May 13 44 39 >
Slide 31: Q&A
Q&A KONGSBERG AUTOMOTIVE // 31
Slide 32: Mobility Solutions for the Future
MOBILITY SOLUTIONS FOR THE FUTURE
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